The current assets and current liabilities for Kolbie Company and Newton Company are shown as follows at the end of 2012.
*These represent prepaid expenses and other non-quick current assets.
Required:
(1) Determine the quick ratio for both companies. Round to two decimal places.
(2) Interpret the quick ratio difference between the two companies.

Question

The current assets and current liabilities for Kolbie Company and Newton Company are shown as follows at the end of 2012.
  *These represent prepaid expenses and other non-quick current assets.
Required:
(1) Determine the quick ratio for both companies. Round to two decimal places.
(2) Interpret the quick ratio difference between the two companies.

Quizplus · Accepted Answer

The Answer of The current assets and current liabilities for Kolbie Company and Newton Company are shown as follows at the end of 2012.
  *These represent prepaid expenses and other non-quick current assets.
Required:
(1) Determine the quick ratio for both companies. Round to two decimal places.
(2) Interpret the quick ratio difference between the two companies.

The Current Assets and Current Liabilities for Kolbie Company and Newton